Huobi

The Financial Hub of Digital Assets

Description

Originally based in Beijing, Huobi is currently headquartered in Singapore and has offices in the United States, Japan, Korea, Hong Kong. The exchange offers more than 100 crypto pairs for trading, able to serve US customers as well through its HBUS exclusive US strategic partner.
As of August 29th, 2018, Huobi achieved a back-door listing on the Hong Kong Stock Exchange (HKEx) after purchasing a controlling 66.26% stake in Pantronics International Corporation, a manufacturer of electronic devices.

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Vision

Huobi intends to expand its business lines into security token trading off the back of increasing early market demand by driving strategic investments and partnerships. Huobi also intends to expand geographically, with promising developments taking place in Russia.

Team

Co-founder Du Jun was originally a product manager at Tencent before resigning in 2013 to found Huobi Exchange.
Co-founder Leon Li was a graduate from China's premier Tsinghua University, having majored in automation engineering. He co-founded Huobi together with Du Jun in 2013. On September 20, 2018, Li met with Putin advisor Sergey Glazyev to discuss possible expansion into Russia.
Dai Zhikang is Huobi's first angel investor, providing capital for technical development and eventually paving the way for other funds (ZhenFund, Sequoia Capital) to follow.

Team

Business Model

Traders and investors who transact on the Huobi trading venue will pay a small percentage or fixed transaction fee, which Huobi will recognize as revenue.

Problem

Initial security token offerings are challenging from a technological and regulatory perspective in and of themselves, but without liquidity on the secondary markets, security tokens lose much of their advantage against traditional private equity.

Solution

As of August 15th, 2018 Huobi made a strategic investment into security token exchange OpenFinance Network to secure a partnership for the development of a security token exchange. Huobi will likely offer its clients security token trading capabilities through OFN's exchange technology.

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Investors

Competition

Huobi will face heavy competition from security token exchanges and partnerships between crypto-exchanges and national stock exchanges in blockchain-friendly jurisdictions such as Switzerland and Singapore.

Market Opportunity

Considering the nascent stage of STO, early liquidity for security tokens may be limited, but not insignificant. According to the World Federation of Exchanges database, 2017 saw a total of $77.566 trillion dollars in equity market turnover globally.
If the assumption is made that any equity issuer can also be a security token issuer, and if it is assumed that private companies will also launch STO, the total market opportunity for exchanges may exceed $77.566 trillion dollars in turnover per year.

Route-to-Market

Huobi has a captive user base of crypto traders that account for daily volumes in the billions of dollars. The crypto bear market that summer 2018 issued in is shifting market sentiment away from utility tokens, which many perceive to be an unsustainable industry in the long term. Newfound interest is taking hold around the advent of security tokens now that industry critical infrastructure is closer to launch.
Huobi will likely market security token trading services directly to its current user base. Its strategic investment in OpenFinance Network will be leveraged to attempt capturing a significant portion of early trading activity in this infant industry.

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Security Token Network is not a registered broker-dealer or investment advisor in any jurisdiction. You cannot invest in any financial product or buy tokens through our website. Nothing published on Security Token Network should be constituted as investment advice or an endorsement of any project. All investments entail risk and you should seek professional investment advice from a licensed financial advisor before making any investment.

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